REALTYBYTES
Revitalisation key to tackle property depreciation
Ghantoot bags Dh300m Fujairah resort contract Eagle Hills is one of the busiest developers with developments spread across the Middle East
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agle Hills Abu Dhabi has awarded the construction and infrastructure works contract for its Fujairah Beach development to Ghantoot Transport and General Contracting. The Abu Dhabi-based private real estate investment and development company made the announcement during an official signing ceremony, marking a significant milestone in the progress of the beachside luxury hotel and residential villa development in Fujairah. Ghantoot will be responsible for the construction of the entire 38,258 square metres site, which includes the 167 key Palace Hotel, 80 luxury villas and the associated infrastructure that will turn the Eagle Hills vision for the resort into a reality. Low Ping, CEO of Eagle Hills, said: “We are pleased to appoint Ghantoot Transport and General Contracting given their strong reputation
and portfolio. This milestone brings us a step closer to delivering this exciting development to Fujairah. Fujairah Beach offers a truly unique investment opportunity to buyers as it is situated on the beach and within the city, and we have already witnessed a huge demand from investors. The project is on track for 2019 completion.” With a strong portfolio and heritage dating back over three decades, Ghantoot Transport and General Contracting boasts a wealth of experience in building highend mixed-use developments across the UAE. Ali Mohammed Sadeq Al Blooshi, Chairman, Ghantoot Group, said: “We are honored to be working with Eagle Hills, offering our vast experience that will ensure this project is executed to the highest quality standards.” Fujairah Beach is centrally located, with an 8-minute drive from the local airport, and 35 minutes away from
the border of Oman. It is expected to be completed by 2019 and will be the first residential development in Fujairah with direct access to the beach on the renowned Gulf of Oman coastline. The new Palace Fujairah Beach is a premium luxury hotel that will be managed by Address Hotels + Resorts brand. It will offer a health club, select cafes, high-quality dining outlets, separate pool for adults and children and world-class meeting venues. In addition to the UAE, Eagle Hills is developing projects in four international markets, namely Morocco, Bahrain, Jordan and Serbia, where it is working to reinvigorate city hubs, improving the standard of living and increasing investment in the local economies. In August 2017, the company signed a Dh300 million facility with the National Bank of Fujairah to finance the construction of Fujairah beach. g
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evitalisation is the solution to tackle the growing challenge of property asset depreciation for many owners, experts said at a recent industry event in Dubai. Over the last ten years, there has been a 74 per cent increase in commercial and residential buildings in Dubai, as well as a 38 per cent increase in hotel buildings. A continuous rise in building standards has also made it more difficult for older properties to remain attractive, further accelerating depreciation. Peter Prischl, International and Global Head of Corporate Real Estate, Drees and Sommer, explained that revitalisation is the key to increasing the value of properties for developers and landlords, “A building’s value depreciates over time. The rate of depreciation is dependent upon three key quality factors which will have been completed at the start of the project: design, materials and construction. Effective minimisation of depreciation can be achieved through regular maintenance of structure and MEP, as well as refurbishments. However, if we are to achieve renewed RoI, we must undergo a revitalisation project, ideally every 15 years." Dubai currently has more than 500 hotels over ten years old that need revitalisation. g Gulf Property
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